The hotel industry met with the President today. The airline industry is asking for about $58 billion in subsidies.
What would Wag The Dog‘s Dustin Hoffman say about $58 billion? “This is nothing.” The hotel industry wants $250 billion.
American Airlines is telling flight attendants they have “great options” to choose from to voluntarily reduce the airline’s workforce: retirement and no pay but two years of benefits, or leave with no pay but benefits. Pilots are being offered about two-thirds of pay.
Unless there’s some sort of commitment not to furlough employees as part of taking the government bailout package airline CEOs and their lobbyists have been pushing for, I’d expect to see furloughs coming next.
Most coverage has been about passengers – being afraid to fly, not allowed to fly by their companies, being advised to avoid risk. The President of the United States is advising against discretionary travel that is still mostly permitted. Yet day in and day out airline crew continue to show up at airports, get on planes, and interact with passengers. They’ve continued to work flights to Europe and Asia that many passengers have been unwilling to take.
Hotels are in line right behind the airlines looking for a bailout – even the Walt Disney Company. So are airport workers, and now Boeing is raising its hand too. We need to reserve government’s response for where it makes the most leveraged difference to society as a whole. There are lessons from China on what’s coming down the road.
The economic challenges aren’t primarily in travel, that’s just what’s slowing down first, and when everybody is bailed out no one is.
Hotels that are empty don’t need so many people at the front desk or servicing rooms. Restaurants that aren’t allowed to serve guests except on a to-go basis don’t need as many servers, even if they had guests. And so Marriott has furloughed ‘tens of thousands’ of employees who will not be paid, but will continue to receive health benefits. Many hotels will also be closing.
The Air Canada Signature Suite Vancouver is now open, and like its counterpart in Toronto is one of the best business class lounges in the world.
At the end of 2017 Air Canada unveiled their international business class Signature Suite lounge in Toronto. In my experience it is the best business class lounge in North America, and perhaps the best lounge in North America. Dining there is genuinely fantastic. It is open only to paid business class passengers on Air Canada, not to Star Alliance customers, award passengers, or upgrades.
A lot of people are grounded right now. Most of us are going to travel again. And we’re sure going to be itching to do so.
No matter what happens with the business of any of the airlines, we’re going to have big airlines to take us where we want to go. They are going to have tons of empty seats for awhile – which means deep discounts, award availability, and aggressive mileage promotions.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Suspending paid services like Gogo and Expert Flyer makes sense. Don’t spend money on a service you aren’t using right now. From a travel company’s perspective they can generate some revenue from customers who forget to cancel, but it’s better to keep all of their customers long term by making it unnecessary to cancel. Many who give up the services temporarily won’t come back
Delta-controlled Virgin Atlantic has its hand out for government subsidies on the one hand, while running new bonus miles and elite qualifying promotions on the other.
I still think it’s too early to move the needle on travel with promotions, but Virgin is in a different boat than U.S. programs whose status years run with the calendar. They don’t have the option of waiting to extend elite status.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
